Salem Radio Network News Wednesday, January 26, 2022

Business

China Evergrande gets $260 million demand, warns of non-payment

(Reuters) -China Evergrande has got a demand under a $260 million guarantee obligation, the company said on Friday, adding it may be unable to repay due to a liquidity crisis that has gripped China’s property sector.

Repayment dates under certain other agreements may be pulled forward if it was unable to meet the obligation, the company warned.

Evergrande, once China’s top-selling developer, has already failed to pay coupons totalling $82.5 million due on Nov. 6 as it stumbles from debt deadline to deadline and grapples with more than $300 billion in liabilities.

The company planned to actively engage with creditors to come up with a plan to deal with its offshore debts, Evergrande said on Friday.

The developer said there was no guarantee that it would have sufficient funds to continue to perform its financial obligations.

(Reporting by Arundhati Dutta in Bengaluru; Editing by Sriraj Kalluvila)

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